Image courtesy of NASA.
The "earth" in a typical earth movement exclusion means "all natural materials that comprise the surface of the earth, including rocks and soil," said the Montana Supreme Court. That being the situation, the Court held that the policy at bar thus excluded coverage for damage caused by a large rock falling down a hillside into the insured’s cabin. Parker v. Safeco Ins. Co. of Am., 384 Mont. 125, 376 P.3d 114 ¶ 22 at 119 (2016).
There being no coverage, there could be no claim for bad faith in this case, either. Specifically, in this case there could be no claim under the Montana Unfair Trade Practices Act as a result of the holding that there was no insurance coverage under the earth movement exclusion here. Parker v. Safeco Ins. Co. of Am., 384 Mont. 125, 376 P.3d 114, ¶ 33 at 121 (2016). This is a pretty universal holding: Where there is no coverage, there can be no claim for insurer bad faith.
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